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30.09.2020 04:00 PM
Jim Rogers' Secret to Success. Why you shouldn't invest in Apple, Amazon, and Google

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Everyone knows that shares of Apple, Amazon, and Google, as well as many other major corporations, are trading at very high prices and are growing every day. Shares of such companies are not able to fall, so investors expect them to grow steadily. This is the position held by most investors, but not by Jim Rogers. He believes that nothing can grow forever and only once a serious fracture occurs. The owner of Rogers Holdings said that it is not going to buy shares of the named giants, as it predicts their inevitable fall. And he was referring not only to the companies mentioned above but also to the entire US technology sector.

Jim Rogers is one of the world's most famous investors. His name is inextricably linked to another famous investor – George Soros. In the 1970s, they co-founded the Quantum Fund, which provided its owners with an income of 4,200%. Rogers was not satisfied with what he achieved on wall street: in 1980, he became interested in traveling and got into the Guinness Book of records, making two trips around the world on a motorcycle and a car.

It is difficult to disagree with the opinion of such an experienced player in the investment market, although there are many doubts because, over the past year, the shares of technology giants have significantly increased in price. For example, Apple's growth for the year exceeded 110%, Amazon shares rose by 83.95%, and Tesla – by 769%. As for the NASDAQ index, which reflects the situation in the high-tech market in the US, it was able to grow by almost 48% over the year. Moreover, at the auction on September 2, this index reached a historical high.

Rogers sees these figures and nevertheless plans to invest in opposite unpopular and even depressing industries, including the sphere of Russian assets. Among the attractive industries, he named travel, tourism, and entertainment. And this is a very reasonable move: the collapse of these areas into a pandemic created favorable conditions for buying. The investor is convinced that as soon as the alarm about the pandemic recedes, people will start living their usual lives again. Such previously ordinary, but under restrictive measures, little-used public places, such as bars, restaurants, cinemas, and even flights by plane, will gain unprecedented popularity. As a result, investment in these areas, according to Rogers, should bring investors an unprecedented profit.

Previously, the investor was dissatisfied with the fact that it is limited to the countries in which it can invest. For example, he sees Venezuela and North Korea as very promising in terms of financing, even despite their low standard of living and obvious economic problems. Under US law, investments by US citizens cannot be extended to States where US sanctions apply. As Rogers says, countries experiencing a disaster are the most profitable for investors. This is because it is a cheap investment that should pay off in full in five or six years.

It is worth noting that Jim Rogers embodies his beliefs: since 2014, he has been actively investing in Russian assets – in the Moscow exchange, PhosAgro, and Aeroflot. In 2020, the investor's fortune is estimated at $320 million. Jim Rogers ' formula for success is clear: invest in cheap assets with the prospect of further growth.

Andreeva Natalya,
Analytical expert of InstaForex
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